Comprehensive online loan transaction

ABSTRACT

Method and system for conducting a commercial transaction requiring a monetary loan online to allow a consumer or borrower to access a lending institution over a network connection and apply for a monetary loan online. The loan application is processed in real time and the borrower is notified of the type of loan, loan amount, interest rate, etc., that he/she is qualified for. Upon acceptance of the loan terms, the borrower is provided with a personal identification number (PIN) and a unique lender transaction ID that serves as confirmation of the loan. The lender transaction ID may then be taken to a suitable seller and used to conduct the transaction. The seller simply accesses the lending institution over a network connection, enters the lender transaction ID, the borrower&#39;s PIN, and other transaction-related information, and the lending institution automatically sends the appropriate payment to the seller.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is related in subject matter to, and herebyincorporates by reference, the following co-pending U.S. patentapplications: application Ser. No. 11/322,775, entitled COMPREHENSIVEONLINE LOAN TRANSACTION, filed Dec. 30, 2005; and application Ser. No.11/322,498, entitled COMPREHENSIVE ONLINE LOAN TRANSACTION, filed Dec.30, 2005.

TECHNICAL FIELD

The disclosed embodiments relate generally to commercial transactionsthat require financing or a monetary loan and, more particularly, to asystem and method for conducting such commercial transactions online.

BACKGROUND

For the average consumer, most major commercial transactions, such asbuying a house, an automobile, a business, and the like, requirefinancing or a monetary loan of some kind in order to pay for thetransaction. There are many kinds of monetary loans available dependingon the type of transaction contemplated, including personal loans, homemortgages, business lines of credit, and so forth. Similarly, there aremany variables or negotiable terms associated with each monetary loan,such as interest rates, loan periods, payment options, and the like.Other important factors to consider include the type of lendinginstitution (e.g., bank, credit union, etc.), the potential seller(e.g., national chain, local dealer, etc.), and an insurer if needed.

An example of a procedure 100 for conducting a transaction involving amonetary loan is illustrated in FIG. 1. The specific example of FIG. 1is an automobile purchase, but the procedure 100 may be applied to othertypes of commercial transactions as well. A consumer or borrower 102begins the procedure 100 by calling his/her lending institution (e.g.,bank, credit union, etc.) 104 to apply for a monetary loan. Afterchecking the borrower's personal information and credit history, arepresentative of the lending institution 104 informs the borrower 102of the loan amount, period, and interest rate that he/she is eligiblefor. If the borrower 102 agrees to the terms of the loan, the lenderrepresentative delivers (e.g., by express mail, courier service, etc.) a“sight draft” 106 to the borrower 102. The “sight draft” 106, whenexecuted, grants to the lending institution 104 a security interest inthe purchased automobile as collateral for the monetary loan.

With the “sight draft” 106 in hand, the borrower 102 may proceed to anappropriate automobile dealership 108 and purchase his/her automobile ofchoice. For the automobile dealership 108, the “sight draft” 106essentially serves as a check or cash payment from the lendinginstitution 104. The dealership 108 simply fills in the pertinentinformation on the “sight draft” 106, including the dealership's name,the automobile's vehicle identification number (VIN), and the purchaseprice, and the borrower 102 signs the “sight draft” 106 to complete thetransaction. Sometimes, the automobile dealership 108 may require theborrower 102 to provide proof of automobile insurance coverage tocomplete the transaction. In that case, the borrower 102 may need tocontact his/her insurer 110 in order to obtain the proof of insurancecoverage.

As can be seen from the foregoing, existing procedures for conducting atransaction involving financing or a monetary loan have a numberdrawbacks and limitations. For one thing, the lending institution 104must employ a staff of representatives to receive telephone calls and/orpersonal visits from the borrower 102 and other consumers. These lenderrepresentatives are typically available only during normal businesshours (e.g., 9 AM-5 PM), which may not be suitable or convenient for theborrower 102. In addition, because the “sight draft” 106 must bephysically delivered to the borrower 102, there is usually a time delayof up to a day or more from the moment the borrower 102 is approved forthe monetary loan. Furthermore, some states and/or automobiledealerships do not accept or recognize the legality or validity of the“sight draft” 106. All of this results in a procedure that is oftencomplicated, time-consuming, and inconvenient for the average consumer.

Accordingly, what is needed is a way to conduct a commercial transactionrequiring a monetary loan that overcomes the drawbacks and limitationsof the existing procedures. In particular, what is needed is a way toconduct such a transaction where one or more aspects of the transaction,including obtaining of the monetary loan, may be performed online.

SUMMARY

The disclosed embodiments are directed to a method and system forconducting a commercial transaction requiring a monetary loan online.The method/system allows a consumer or borrower to access a lendinginstitution over a network connection and apply for a monetary loan. Theloan application is processed in real time and the borrower is notifiedof the type of loan, loan amount, interest rate, etc., that he/she isqualified for. Upon acceptance of the loan terms, the borrower isprovided with a personal identification number (PIN) and unique lendertransaction identification (ID) that serves as confirmation of the loan.The lender transaction ID may then be taken to a suitable seller andused to conduct the transaction. The seller simply accesses the lendinginstitution over a network connection, enters the lender transaction ID,the borrower's PIN, and other transaction-related information, and thelending institution automatically sends the appropriate payment to theseller.

BRIEF DESCRIPTION OF THE DRAWINGS

The foregoing and other advantages will become apparent from thefollowing detailed description and upon reference to the drawings,wherein:

FIG. 1, described previously, illustrates a procedure for conducting acommercial transaction requiring a monetary loan according to the priorart;

FIG. 2 illustrates an exemplary system for conducting a commercialtransaction requiring a monetary loan;

FIG. 3 illustrates an exemplary computing system for conducting acommercial transaction requiring a monetary loan;

FIGS. 4-15 illustrate exemplary web pages for conducting a commercialtransaction requiring a monetary loan;

FIG. 16 illustrates a portion of a method for conducting a commercialtransaction requiring a monetary loan; and

FIG. 17 illustrates another portion of a method for conducting acommercial transaction requiring a monetary loan.

DETAILED DESCRIPTION

Following is a detailed description with reference to the drawingswherein the same reference labels are used for the same or similarelements. As used throughout this description and the claims, the terms“a” and “an” are intended to mean “one or more.”

As explained above, existing procedures for conducting a commercialtransaction requiring financing or a monetary loan are often confusing,time-consuming, and inconvenient for the average consumer. Variousembodiments provide a consumer or borrower the option to conduct such atransaction online, thus avoiding the need for physical documentation,such as “sight drafts” and other loan-related documents, and thecomplications and delays associated therewith. The consumer or borrowermay simply apply for and obtain the financing or loan online at any timeby accessing a suitable lending institution over a network connection.Such an arrangement allows loan or financing applications to beprocessed in real time and funds to be made available quickly withouthaving to rely on lender representatives. Similarly, sellers or dealersmay complete the transaction by accessing the lending institution over anetwork connection to automatically obtain payment for the purchaseditems. This allows sellers to be paid in real time while avoidingpotential legality or validity issues concerning the “sight draft” 106and other such documents.

FIG. 2 illustrates a system 200 that may be used to conduct atransaction of the type mentioned above. The system 200 includes alender computing system 202 connected to a consumer computing system 204over a network 206. The network 206, which may be a private network or apublic network (e.g., the Internet), also connects a seller computingsystem 208 to the lender computing system 202 (and to the consumercomputing system 204). The computing systems 202, 204, and 208 may beany type of computer or computing device suitable for that system'sparticular requirements, including a mainframe computer, workstationcomputer, server, desktop computer, laptop computer, cell phone,personal digital assistant (PDA), and the like.

The connection between the network 206 and the various computing systems202, 204, and 208 may be any suitable network connection, including awired connection, wireless connection, and/or a combination of both. Forsimplicity, the connections are shown in FIG. 2 as a double-headed arrowbetween each computing system 202, 204, and 208 and the network 206.Note also that although only a single lender computing system 202,consumer computing system 204, and seller computing system 208 areshown, those having ordinary skill in the art will understand thatmultiple instances of each type of computing systems may be connected toone another over the network 206.

When a consumer wishes to conduct a transaction involving financing or amonetary loan, he/she may use the consumer computing system 204 toaccess the lender computing system 202 and apply for the loan from thelending institution. The lender computing system 202 usually asks theconsumer to provide various personal and financial information (e.g.,name, date of birth, annual salary, etc.) via the consumer computingsystem 204. The lender computing system 202 thereafter may send thisinformation over the network 206 to one or more credit reporting bureaus(e.g., Equifax, Experian, TransUnion, etc.) to obtain a report of theconsumer's credit history. The credit history report is preferablyobtained in real time in order to expedite processing of the loanapplication, but it is certainly possible to delay the report.

A determination is then made by the lender computing system 202 as towhether the consumer qualifies for financing or a loan based, forexample, on his/her credit history and the lending institution'sinternal lending policies. Assuming the consumer is eligible, the lendercomputing system 202 notifies the consumer via the consumer computingsystem 204 of the loan type and amount, the interest rate, the durationof the loan, and other pertinent loan terms. Once the consumer agrees tothe terms, the lender computing system 202 generates a unique lendertransaction 1D that may be used to confirm to a seller that a loan hasbeen made to the particular consumer in question. The lender computingsystem 202 also asks the consumer at this point to select a personalidentification number (PIN) that may be used by the lender computingsystem 202 to verify the identity of the consumer. The consumer may nowproceed to a suitable seller to make his/her purchase.

With the lender transaction ID in hand, the seller is essentiallyguaranteed that the lending institution will finance the consumer'spurchase. In this respect, the lender transaction ID functions in muchthe same way as the “sight draft” mentioned above, but without thecomplications and delays associated with the “sight draft.” The sellersimply accesses the lender computing system 202 via the seller computingsystem 208 to reference the loan using the lender transaction ID. If thelender transaction ID is valid, the lender computing system 202 asks theseller to provide additional information related to the transaction(e.g., purchase price, vehicle identification number (VIN), year, make,model, etc.). Finally, the lender computing system 202 asks the consumerto enter his/her PIN to verify the identity of the consumer. In someembodiments, the lender computing system 202 may also require the sellerto be verified, for example, by checking to see whether the seller isregistered with an appropriate industry association or is part of aseller network. In any event, if the PIN is valid, the lender computingsystem 202 instructs the lending institution to forward an amount ofmoney equal to the indicated purchase price into an account specified bythe seller.

Sometimes the seller may not have a connection to the network 206 andtherefore cannot access the lender computing system 202. In that case,the seller may telephone the lending institution (e.g., via a toll-freenumber) and provide the lender transaction ID. Upon verifying the lendertransaction ID, a lender representative may call the consumer at atelephone number previously designated by the consumer, for example, acell phone number. The consumer may then verify his/her identificationto the lender representative to complete the transaction.

FIG. 3 illustrates the lender computing system 202 in more detail. Inone embodiment, the lender computing system 202 is a web server hostinga publicly available website for the lending institution and theconsumer accesses the website via a commercially available web browserrunning on the consumer computing system 204. In other embodiments, thelender computing system 202 may be a conventional application serverhosting a proprietary online service accessible only via a privatenetwork. In any event, the lender computing system 202 typically hasappropriate security mechanisms in place to prevent unauthorized thirdparties from intercepting the consumer's information.

In the implementation shown, the lender computing system 202 may includea bus 300 or other communication mechanism for communicating informationand a processor 302 coupled with the bus 300 for processing information.The lender computing system 202 also includes a main memory 304, such asa random access memory (RAM) or other dynamic storage device, coupled tothe bus 300 for storing computer-readable instructions to be executed bythe processor 302. The main memory 304 also may be used for storingtemporary variables or other intermediate information during executionof the instructions to be executed by the processor 302. The lendercomputing system 202 further includes a read-only memory (ROM) 306 orother static storage device coupled to the bus 300 for storing staticinformation and instructions for the processor 302. A computer-readablestorage device 308, such as a magnetic disk or optical disk, is coupledto the bus 300 for storing information and instructions for theprocessor 302.

The lender computing system 202 may be coupled via the bus 300 to adisplay 310, such as a cathode ray tube (CRT), for displayinginformation to a user. An input device 312, including, for example,alphanumeric and other keys, is coupled to the bus 300 for communicatinginformation and command selections to the processor 302. Another type ofuser input device is a cursor control 314, such as a mouse, a trackball,or cursor-direction keys for communicating direction information andcommand selections to the processor 302 and for controlling cursormovement on the display 310. The cursor control 314 typically has twodegrees of freedom in two axes, a first axis (e.g., x) and a second axis(e.g., y), that allow the device to specify positions in a plane.

The term “computer-readable instructions” as used above refers to anyinstructions that may be performed by the processor 302 and/or othercomponent. Similarly, the term “computer-readable medium” refers to anystorage medium that may be used to store the computer-readableinstructions. Such a medium may take many forms, including, but notlimited to, non-volatile media, volatile media, and transmission media.Non-volatile media include, for example, optical or magnetic disks, suchas the storage device 308. Volatile media include dynamic memory, suchas main memory 304. Transmission media include coaxial cables, copperwire and fiber optics, including wires of the bus 300. Transmissionmedia can also take the form of acoustic or light waves, such as thosegenerated during radio frequency (RF) and infrared (IR) datacommunications. Common forms of computer-readable media include, forexample, a floppy disk, a flexible disk, hard disk, magnetic tape, anyother magnetic medium, a CD-ROM, DVD, any other optical medium, punchcards, paper tape, any other physical medium with patterns of holes, aRAM, a PROM, an EPROM, a FLASH-EPROM, any other memory chip orcartridge, or any other medium from which a computer can read.

Various forms of the computer-readable media may be involved in carryingone or more sequences of one or more instructions to the processor 302for execution. For example, the instructions may initially be borne on amagnetic disk of a remote computer. The remote computer can load theinstructions into its dynamic memory and send the instructions over atelephone line using a modem. A modem local to the lender computingsystem 202 can receive the data on the telephone line and use aninfrared transmitter to convert the data to an infrared signal. Aninfrared detector coupled to the bus 300 can receive the data carried inthe infrared signal and place the data on the bus 300. The bus 300carries the data to the main memory 304, from which the processor 302retrieves and executes the instructions. The instructions received bythe main memory 304 may optionally be stored on the storage device 308either before or after execution by the processor 302.

The lender computing system 202 may also include a communicationinterface 316 coupled to the bus 300. The communication interface 316provides a two-way data communication coupling between the lendercomputing system 202 and the network 206. For example, the communicationinterface 316 may be an integrated services digital network (ISDN) cardor a modem used to provide a data communication connection to acorresponding type of telephone line. As another example, thecommunication interface 316 may be a local area network (LAN) card usedto provide a data communication connection to a compatible LAN. Wirelesslinks may also be implemented. In any such implementation, thecommunication interface 316 sends and receives electrical,electromagnetic, optical, or other signals that carry digital datastreams representing various types of information.

In some embodiments, a transaction module 318 is installed on the lendercomputing system 202, for example, on the storage device 308. Thetransaction module 318 is designed to allow transactions of the typementioned above to be conducted online, thus eliminating the need forphysical documentations, such as “sight drafts” and other loan-relateddocuments. In one embodiment, the transaction module 318 is composed ofseveral components that are described here in terms of their functions,including a consumer component 320, a seller component 322, and a userinterface 324. Indeed, the transaction module 318 itself may be only oneof several service components (not expressly shown) running on thelender computing system 202, each component allowing one of the services(e.g., insurance, loans, investment, etc.) provided by the lendinginstitution to be available online.

Briefly, the consumer component 320 functions to receive and processloan or financing applications from consumers, determine whether theconsumers are eligible for a loan, notify the consumers of the loanterms, generate the unique lender transaction IDs, and obtain theconsumer PINs. The seller component 322 is responsible for verifying thelender transaction IDs received from sellers, verifying the identity ofthe consumers, and forwarding the appropriate payments to the sellers.In some cases, the seller component 322 also ensures that the sellersare legitimate businesses before allowing them to use the transactionIDs. As for the user interface 324, this component generates the variousgraphical user interfaces used by the consumer component 320 and theseller component 322 to interact with the consumers and the sellers,respectively.

An exemplary implementation of the transaction module 318 as a web-basedapplication (i.e., a website) is illustrated in FIGS. 4-15 via aplurality of web pages. Although not necessary, it is assumed throughoutFIGS. 4-15 that the consumer is a member of, or has an account with, thelending institution operating the transaction module 318. Also, the webpages represent merely one possible web page design or layout generatedby the graphical user interface component 324. Those having ordinaryskill in the art will understand that numerous other designs or layoutsmay be used. Moreover, these web pages are illustrative only and are notintended to be exhaustive in content or number, nor do they represent aminimum required number of web pages or a particularly preferablesequence of web pages.

Referring to FIG. 4, an interest rate information web page 400 is shownthat may be used by the consumer component 320 in one embodiment toinform a consumer of the various types of loans that are available. Thisweb page 400 is typically displayed once the consumer has logged in tohis/her account on the lender computing system 202 and has expressed aninterest in obtaining a loan by selecting the “Banking” tab. Theinterest rate information web page 400 may include, among other things,an annual percentage rate (APR) table 402 that lists the types of loans(e.g., fixed, variable, etc.), the loan periods (e.g., 48 months, 60months, 72 months, etc.), and the interest rates that are available witheach loan type and period.

In some cases, the consumer may have previously received an offer fromthe lending institution for a pre-approved loan. FIG. 5 illustrates apre-approved loan web page 500 that may be used by the consumercomponent 320 to notify the consumer of the pre-approved loan. This webpage 500 may include, among other things, a table 502 that lists thetype of loan (e.g., personal, automotive, etc.), the loan amount, andthe interest rate that the consumer has been pre-approved for, alongwith various other pertinent information. The consumer may then acceptthe pre-approved loan or apply for a different loan by selecting theappropriate hyperlink on the web page.

FIG. 6 illustrates a loan application web page 600 that may be used bythe consumer component 322 when the consumer wishes to apply for a loan.This web page 600 may be one of several web pages (not expressly shownhere) that together form a comprehensive loan application that may beused by the lending institution to obtain the information needed toprocess a loan. The loan application web page 600 may include, amongother things, an application information table 602 for specifying thetype of loan, the amount of the loan, and other pertinent information.In the present example, the consumer has selected an automotive loanand, therefore, the remaining web pages have been adapted for anautomobile purchase. Also included is a borrower information table 604for obtaining various personal and financial information about theconsumer.

After the consumer has completed the comprehensive loan application,he/she may be asked by the consumer component 320 to verify the loanapplication information provided. FIG. 7 illustrates an exemplaryverification web page 700 that may be used by the consumer component 320to verify the loan application information. The verification web page700 may include, among other things, and information summary table 702that lists the various items of information provided by the consumer onthe comprehensive loan application (see FIG. 6). The consumer may thenverify the information or change the information as needed by selectingthe appropriate hyperlink on the web page.

The consumer component 320 thereafter sends the information provided onthe comprehensive loan application to one or more credit reportingbureaus and obtains a credit history report for the consumer. Based onthe credit history report and the lending institution's internal lendingpolicies, the consumer component 320 determines whether the consumerqualifies for the requested loan.

Assuming the consumer is eligible for the requested loan, he/she isgiven the option of choosing the type of loan documents to be used. FIG.8 illustrates a document preference web page 800 that may be used by theconsumer component 320 for allowing the consumer to select the types ofloan documents. As can be seen from this web page 800, the consumer maychoose to have all documents accepted, signed, and deliveredelectronically (option 802), all documents accepted, signed, anddelivered by paper (option 804), or combination of both (option 806). Insome embodiments, a reduction in interest rate may be provided to theconsumer as an incentive to select the electronic option.

In some embodiments, the consumer may have an existing automobileinsurance policy with the lending institution. In that case, thedocument preference web page 800 may further include options for theconsumer to update the automobile insurance policy. The update optionsmay include, for example, an option to update the policy automatically(option 808), in which case proof of insurance will be generatedelectronically for the dealership. The update options may furtherinclude an option to update the policy by telephone (option 810), inwhich case the proof of insurance will be faxed to the dealership later.

Once the document preferences have been selected and, if applicable, theautomobile insurance policy update options chosen, the consumercomponent 320 notifies the consumer of the loan. This may be achievedvia a congratulatory message, such as “Congratulations!” and the like,on a congratulatory web page 900, as illustrated in FIG. 9. Inconjunction with the congratulatory message, the consumer component 320may also use the congratulatory web page 900 to inform the consumer ofany additional or maximum amount he/is may be eligible to borrow. Tothis end, the web page 900 may include, among other things, a table 902listing the various possible loan terms for the additional or maximumamount.

FIG. 10 illustrates a web-based note, disclosure, and security agreement1000 generated by the consumer component 320 for securing the loan. Thisonline agreement is displayed when the consumer has selected theelectronic option (see FIG. 8). The note, disclosure, and securityagreement 1000 specifies the terms of the loan and, when executed,grants to the lending institution a security interest in the automobileto be purchased. When this agreement 1000 is displayed, the consumermust either accept or decline the loan by selecting an appropriatehyperlink.

Once the consumer has accepted the note, disclosure, and securityagreement 1000, he/she may be taken to a PIN selection web page 1100, asshown in FIG. 11. At this web page 1100, the consumer is requested toselect a PIN 1102 that may then be used to verify the identity of theconsumer when the purchase is made later at the dealership.

FIG. 12 illustrates a confirmation web page 1200 that may be used by theconsumer component 320 to provide the consumer with the lendertransaction ID 1202. As explained above, the lender transaction ED isgenerated by the consumer component 320 and may be used for confirmingto the dealership that a loan of an appropriate amount has beenguaranteed or otherwise provided to the consumer. In this regard, thelender transaction ID functions in much the same way as the “sightdraft” mentioned previously, but without the complications and delaysassociated with the “sight draft.” The lender transaction ID allows thedealership to treat the transaction as a cash transaction for allintents and purposes, as will be explained with respect to FIGS. 13-15.

Thus far, the description has focused mainly on the consumer component320 of the transaction module 318. FIGS. 13-15 illustrate exemplary webpages that may be used by the seller component 322 to interact, forexample, with dealerships. Referring to FIG. 13, a dealership web page1300 is shown that may be used by the seller component 322 to interactwith a dealership. This web page 1300 may be displayed when thedealership accesses the lender computing system 202 to complete thetransaction (i.e., after the consumer and the dealership have agreed ona purchase price for the contemplated purchase and the consumer hasdisclosed the lender transaction ID to the dealership). The dealershipweb page 1300 may include, among other things, a transaction ID field1302 or the dealership to enter the lender transaction ID. In someembodiments, the dealership web page 1300 may also include a NationalAutomobile Dealership Association (NADA) identification field 1304 forentering the dealership's NADA identification. The NADA identificationmay then be used to verify that the dealership is a legitimateautomobile dealer before any payment is made to that dealership. In someembodiments, various incentives, such as listing on the lendinginstitution's list of preferred dealerships, may be provided to thedealership to become a member of NADA or other similar organizations.

After the lender transaction ID and the NADA ID have been entered andconfirmed by the seller component 322, the dealership web page 1300 mayrequest that the dealership enter various information related to thetransaction details. This is illustrated in FIG. 14 where a number oftransaction detail fields have been added to the web page 1300. Thetransaction detail fields may include, for example, a VIN field 1306, apurchase price field 1308, and a manufacturer suggested retail price(MSRP) field 1310. The web page 1300 may also give the dealership anumber of options regarding funding, including by cashier's check(option 1312) or by direct deposit (option 1314). Choosing the directdeposit option requires the dealership to enter the appropriatedepositing information on the web page 1300, including the dealership'sbank routing number (field 1316) and bank account number (field 1318).

Once the above information has been entered and verified, the final stepto completing the transaction and obtaining payment for the dealershipis for the consumer to verify his/her identity to the seller component322. This is illustrated in FIG. 15 where a member authorization field1320 has been added to the web page 1300 for the consumer to enterhis/her previously selected PIN (see FIG. 11). If the PIN is determinedto be valid, the seller component 322 instructs the lending institutionto send to the dealership an amount of money equal to the purchase pricespecified by the dealership via the funding option selected (e.g.,cashier's check, direct deposit).

The foregoing embodiments and various implementations and manifestationsthereof may be summarized in one or more flowcharts, as shown in FIGS.16 and 17. It should be noted that although the flow charts show anumber of discrete steps, those having ordinary skill in the art willrecognize that two or more steps may be combined into a single step, andan individual step may be divided into several component steps.

FIG. 16 illustrates a flowchart 1600 for a portion of a method that maybe used by a lending institution to allow transactions of the typediscussed herein to be conducted online. The method begins at step 1602where the lending institution receives and processes loan applicationsonline from consumers via a lender computing system. If a consumer isdetermined to be eligible for a monetary loan, the lending institutionnotifies the consumer of the loan terms via the lender computing systemand obtains consumer acceptance of the loan terms at step 1604. Wherethe consumer has an existing insurance policy with the lendinginstitution, it is also possible to update the insurance policy toinclude the item to be purchased at step 1606, thus allowing proof ofinsurance to be established more quickly. At step 1608, the consumer isasked to provide the lending institution with a PIN for subsequentidentification verification purposes, and at step 1610, the lendinginstitution generates a lender transaction ID that may be used by aseller to complete the transaction and obtain payment.

FIG. 17 illustrates a flowchart 1700 for another portion of a methodthat may be used by a lending institution to allow transactions of thetype discussed herein to be conducted online. The method begins at step1702, where the lending institution receives and verifies a lendertransaction ID online from a seller via a lender computing system. Theseller typically receives the lender transaction ID from the consumerafter the consumer and the seller have agreed on a purchase price forthe item to be purchased. In some embodiments, the lending institutionmay also receive and verify the seller identification online at step1704 to determine whether the seller is a legitimate business. Assumingthat the lender transaction ID is determined to be valid (and that theseller is a legitimate seller), the lending institution requests theseller to provide various details regarding the transaction at step1706, such as the purchase price, VIN, and MSRP (where the item to bepurchased is an automobile). At step 1708, the lending institutionrequest and verifies the PIN previously selected by the consumer inorder to authenticate the identity of the consumer. If the PIN is valid,the lending institution forwards the appropriate payment to the sellervia the payment option (e.g., cashier's check, direct deposit, etc.)selected by the seller.

While the detailed description has been described with reference to oneor more particular embodiments, those skilled in the art will recognizethat many changes may be made thereto without departing from the spiritand scope of the description. For example, although the detaileddescription has been described in the context of an automobile purchase,the disclosed embodiments may be equally applicable to any transactionwhere a loan or financing is required, including the purchase of a home,a business, and the like. Moreover, although the detailed descriptionhas been illustrated herein by way of several exemplary web pages, otherelectronic transmission means may also be used. For example, in additionto (or instead of) web pages, information may also be transmitted byemail from/to the consumer to/from the lending institution and theseller. Therefore, each of the foregoing embodiments and obviousvariations thereof is contemplated as falling within the scope of theclaimed subject matter, which is set forth in the following claims.

What is claimed is:
 1. A method for conducting a commercial transactiononline, said commercial transaction involving a consumer, a lendinginstitution, and a seller, where said seller has a seller-buyerrelationship with said consumer, and where said consumer providespayment to said seller using a monetary loan from said lendinginstitution, the method comprising: receiving loan applicationinformation for said monetary loan at a first computing system of saidlending institution via a network from a second computing system of saidconsumer, wherein said loan application information includes a loan typeof said monetary loan and an amount of said monetary loan; processingsaid loan application information by said first computing system of saidlending institution; generating a unique transaction identification forsaid monetary loan by the first computing system of said lendinginstitution; electronically providing said unique transactionidentification to said second computing system of said consumer via saidnetwork; receiving, by said first computing system of said lendinginstitution, said unique transaction identification via said networkfrom a third computing system of said seller, wherein said uniquetransaction identification was provided from said consumer to saidseller to effect payment for goods or services provided from said sellerto said consumer; and providing funds based on said monetary loan tosaid third computing system of said seller from said first computingsystem of said lending institution to complete said commercialtransaction.
 2. The method according to claim 1, wherein said network isthe Internet and said loan application information is received at awebsite on said Internet.
 3. The method according to claim 1, whereinsaid loan application information is receivable at said lendinginstitution from one or more of the following sources: a mainframecomputer; a workstation computer; a server computer; a desktop computer;a laptop computer; a cell phone; and a personal digital assistant. 4.The method according to claim 1, further comprising receivingtransaction details for said commercial transaction, the transactiondetails including a vehicle identification number.
 5. The methodaccording to claim 1, further comprising processing said loanapplication information in real time.
 6. The method according to claim1, further comprising said consumer providing said unique transactionidentification to said seller as part of said commercial transaction. 7.The method according to claim 1, wherein said commercial transaction isat least one of the following types of transactions: an automobilepurchase, a house purchase, and a business purchase.
 8. A computer-basedsystem for conducting a commercial transaction online, said commercialtransaction involving a consumer, a lending institution, and a seller,where said seller has a seller-buyer relationship with said consumer,and where said consumer provides payment to said seller using a monetaryloan from said lending institution, comprising: a network; a firstcomputing system connected to said network, said first computing systemto receive loan application information for said monetary loan from asecond computing system, wherein said loan application informationincludes a loan type of said monetary loan and an amount of saidmonetary loan; said first computing system to generate a uniquetransaction identification for said monetary loan based on said monetaryloan being approved, and to electronically provide said uniquetransaction identification to said second computing system via saidnetwork; and said first computing system to receive said uniquetransaction identification via said network from a third computingsystem, wherein said unique transaction identification was provided fromsaid consumer to said seller to effect payment for goods or servicesprovided from said seller to said consumer; and wherein said firstcomputing system is configured to provide funds based on said monetaryloan to said third computing system to complete said commercialtransaction.
 9. The system according to claim 8, wherein said network isthe Internet and said first computing system is a web server hosting awebsite for said lending institution on said Internet.
 10. The systemaccording to claim 8, wherein said second computing system and saidthird computing system each is at least one of the following: amainframe computer; a workstation computer; a server computer; a desktopcomputer; a laptop computer; a cell phone; or a personal digitalassistant.
 11. The system according to claim 8, wherein said firstcomputing system is to receive transaction details for said commercialtransaction, the transaction details including a vehicle identificationnumber.
 12. The system according to claim 8, wherein said firstcomputing system is further configured to processes said loanapplication information in real time.
 13. The system according to claim8, wherein said consumer provides said unique transaction identificationto an operator of said third computing system as part of said commercialtransaction.
 14. The system according to claim 8, wherein saidcommercial transaction is at least one of the following types oftransactions: an automobile purchase, a house purchase, and a businesspurchase.
 15. A computer-readable medium having computer-executableinstructions stored thereon that are executable by a number of computingsystems for conducting a commercial transaction online, said commercialtransaction involving a consumer, a lending institution, and a seller,said computer-executable instructions when executed by said number ofcomputing systems, cause said number of computing systems to: receiveloan application information for said monetary loan at a first computingsystem of said lending institution via a network from a second computingsystem of said consumer, wherein said loan application informationincludes a loan type of said monetary loan and an amount of saidmonetary loan; process said loan application information by said firstcomputing system of said lending institution; generate a uniquetransaction identification for said monetary loan by the first computingsystem of said lending institution; electronically provide said uniquetransaction identification to said second computing system of saidconsumer via said network; receive, by said first computing system ofsaid lending institution, said unique transaction identification viasaid network from a third computing system of said seller, wherein saidunique transaction identification was provided from said consumer tosaid seller to effect payment for goods or services provided from saidseller to said consumer; and provide funds based on said monetary loanto said third computing system of said seller from said first computingsystem of said lending institution to complete said commercialtransaction.
 16. The computer-readable medium according to claim 15,wherein said network is the Internet and said first computing systemreceives said loan application information at a website on saidInternet.
 17. The computer-readable medium according to claim 15,wherein said first computing system receives said loan applicationinformation from at least one of the following sources: a mainframecomputer; a workstation computer; a server computer; a desktop computer;a laptop computer; a cell phone; or a personal digital assistant. 18.The computer-readable medium according to claim 15, wherein saidcomputer-readable instructions further comprise computer-readableinstructions that when executed by said number of computing systems,cause said number of computing systems to receive transactions detailsfor said commercial transaction, the transaction details including avehicle identification number.
 19. The computer-readable mediumaccording to claim 15, wherein said first computing system is furtherconfigured to process said loan application information in real time.20. The computer-readable medium according to claim 15, wherein saidcommercial transaction is at least one of the following types oftransactions: an automobile purchase, a house purchase, and a businesspurchase.
 21. The computer-readable medium according to claim 15,wherein said commercial transaction comprises an automobile purchase.